Clearing Definition
Clearing is the critical post-trade process in financial markets and payment systems that involves the verification, reconciliation, and netting of financial ob
Clearing is the critical post-trade process in financial markets and payment systems that involves the verification, reconciliation, and netting of financial obligations between transacting parties before the final transfer of funds or securities can occur. This intermediary process confirms the validity of a transaction, determines the final net financial position of each participant, and is essential for mitigating counterparty risk prior to settlement.